Net Stable Funding Ratio (NSFR) and Bank Performance: A Study of the Indian Banks

The present study examines the impact of Net Stable Funding Ratio (NSFR) on performance Indian commercial banks from 2010 to 2021. further investigates how relationship between liquidity and varies under influence bank-specific factors such as ownership structure (Promoter vs. Institutional investors). Bank is evaluated using a two-fold approach—Profitability measures (NIMs ROA) NPA levels banks. Using Dynamic panel data regression technique, we find that NSFR NIMs negative, implying bank tend decline comply with regulation. Furthermore, demonstrates inverse becomes more profound when promoters’ stakes are high. Finally, results highlight for higher institutional holdings, witness an upward trend ratio increases. From policy perspective, will help policymakers understand changes in wider banking sector guide them overall direction which progress reforms.